Broker vs going direct: the trade‑off in one paragraph
An asset finance broker accesses multiple lenders for you, packages the application, negotiates terms, and is typically paid commission by the lender (not by you). Going direct to a lender means working with a single bank or non‑bank lender on their products only. Brokers usually win on choice, complex deals and time saved; direct is sometimes faster and simpler for vanilla deals with banks you already have a relationship with. The right pick depends on your file complexity, time tolerance, and existing banking relationships.
What an asset finance broker actually does
- Takes your needs. Asset type, amount, term, balloon preference, time pressure, business profile.
- Matches to lender appetite. Brokers maintain knowledge of which lenders are pricing well, which are tightening, which suit your profile.
- Packages the application. Pulls the right documents, frames the narrative for credit, anticipates pushback.
- Negotiates terms. Rate, fees, balloon, term, conditions.
- Coordinates settlement. Liaises between you, the lender, and (often) the asset supplier through to delivery.
- Disclosure. Provides a Credit Guide and Credit Proposal (where the law requires) and discloses how they're paid.
What going direct means
"Direct" typically means applying to a lender's asset finance division yourself — a Big 4 bank business banking team, a second‑tier bank's commercial team, or a specialist non‑bank lender's online or phone channel. You're working with one lender on their own products and policies.
- One product set, one set of credit rules.
- You do the work brokers normally do: packaging, follow‑up, negotiation.
- The lender's relationship manager is paid by the lender; their incentive is to win the deal, not necessarily to find you the best deal on the market.
- Best fit when you already bank with the lender and your file is straightforward.
Cost comparison: who actually pays
One of the most common misconceptions is that brokers cost the borrower extra. In practice:
- Commission is usually paid by the lender. The lender pays the broker a commission from their own margin. The advertised rate to you doesn't change.
- Brokers must disclose commission. Under their licensing and association obligations, brokers disclose the commission they receive on each deal.
- Some brokers also charge a fee‑for‑service. Less common in asset finance than in home loans, but it can happen on complex deals. This must be disclosed up front.
- Direct can come with similar markups. Lender BDMs aren't free either; their cost is in the lender's overheads and priced into rates. Whether broker or direct is cheaper on rate is empirical, not structural.
Independent comparison of rates from a broker vs the same lender direct is the only reliable test. Sometimes broker access to volume tiers means the broker rate is lower; sometimes the bank's own relationship rate is lower. It depends.
Decision matrix
| Situation | Usually better | Why |
|---|---|---|
| Established business, vanilla deal, existing bank relationship | Either; lean direct | Relationship pricing can beat broker rates |
| New ABN, no banking history | Broker | Broker knows which lenders accept new ABNs |
| Adverse credit, low‑doc, or unusual asset | Broker | Broker maps to specialist lenders; banks often decline |
| Time‑pressured deal (asset on hold) | Broker, if they have settlement experience | Specialist non‑bank channels settle faster |
| Multiple assets, multi‑party or trust structure | Broker | Structural complexity benefits from package design |
| Single low‑value asset, you have time | Direct (online lender) | Online quick‑quote tools cover this well |
| You want to compare multiple lenders without applying | Broker | Brokers can pre‑qualify multiple lenders quickly |
How to choose a broker if you go that path
- Australian Credit Licence (ACL) or authorised credit representative. Verify on the ASIC professional registers.
- MFAA or FBAA membership. The two industry bodies. Both impose conduct standards and a complaints process.
- AFCA membership. Provides external dispute resolution if something goes wrong.
- Lender panel disclosure. Ask how many lenders they access and which they typically place with. A broker placing 90% of deals with one lender is closer to a tied agent than a true comparison.
- Commission disclosure. The broker should be willing to tell you what they earn on the proposed deal.
- Asset finance specialisation. Asset finance is a specialty distinct from home loans. A mortgage broker who occasionally does asset finance is not the same as a dedicated asset finance broker.
- References / reviews. Genuine customer reviews tell you more than a polished website.
How to go direct effectively
- Start with your existing business bank. They have your transaction data and might offer a relationship rate.
- Get two or three direct quotes. Even if you bank with one of the Big 4, a quick application to a second‑tier or specialist gives you a comparison point.
- Ask for the comparison rate. The headline rate alone can hide fees. Some lenders quote a comparison rate including standard fees; many don't. Ask for an all‑in cost.
- Watch for flat‑rate quotes. If a quote is structured as a "flat rate", convert to a reducing‑balance APR using our converter before comparing.
- Document and date everything. Quotes have validity windows. Get them in writing.
- Ask what their pricing looks like on the next term down/up. Sometimes 48 months is cheaper than 60 months; sometimes the reverse. Useful negotiation data.
Hybrid approach: broker + direct quotes
One efficient approach is to use a broker as a pricing baseline and then test directly with one or two lenders. Done well, this:
- Gives you visibility across multiple lenders without applying to all of them.
- Lets your existing bank know there's competition for the deal.
- Sometimes reveals a relationship rate from your bank that the broker channel doesn't access.
Caveat: applying to multiple lenders simultaneously creates multiple credit enquiries on your file, which is visible to subsequent lenders. Use this hybrid approach for pricing discovery first, formal applications second.
Frequently asked questions
Do brokers add to the cost of my loan?
Not directly in most cases. Brokers are typically paid commission by the lender, not the borrower. The lender's advertised rate doesn't normally change based on whether you came direct or via broker. The right question is which channel gets you the lowest all‑in cost — sometimes broker, sometimes direct.
Are there lenders only accessible through brokers?
Yes. Many specialist non‑bank asset finance lenders only deal through accredited broker channels — they don't run a direct‑to‑consumer channel. If you have an unusual deal that needs specialist treatment, a broker may be the only practical access path.
Can I get pre‑approval from multiple lenders without harming my credit?
Some lenders offer indicative quotes without a full credit pull. A broker can canvass appetite across lenders before submitting a formal application. Once formal applications go in, each one creates a credit enquiry that's visible to other lenders.
What licences should I look for on an asset finance broker?
An Australian Credit Licence (ACL) or status as an authorised credit representative of an ACL holder, where applicable. Membership of the MFAA or FBAA. AFCA external dispute resolution scheme membership. Professional indemnity insurance. ASIC's professional registers let you verify all of these.
Where we sit on this
Asset Finance Help is an information publisher. We offer to introduce readers to an accredited Australian asset finance broker from our partner panel when readers ask for an introduction. We disclose that we earn referral fees on settled deals in our Disclosures. We don't tell you that broker is always the right path — sometimes direct is. We do encourage readers to get multiple data points before committing.
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Try the broker path
If you've decided you'd like the broker path, we offer introductions to accredited Australian asset finance brokers on our partner panel. The introduction is optional — see our Disclosures for how the referral arrangement works.